with all the gains from the Fed pivot now basically erased. The economic data
didn’t help the market either with the inside data in the US ISM Manufacturing PMI painting
a weaker picture than the headline beat and the US Job Openings coming
in lower than expected with the hiring rate now below the pre-pandemic levels. There
are still key data to be released this week, but the new year is starting on a
negative note.
Nasdaq Composite Technical
Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq Composite
dropped below the swing low around the 14770 level and the red 21 moving average. This
has opened the door for a bigger fall into the 14050 level. The sellers are
likely to keep piling in, especially if the data continues to disappoint, while
the buyers will need the price to rise back above the 14770 level to get back
some conviction.
Nasdaq Composite Technical
Analysis – 4 hour Timeframe
On the 4 hour chart, we can see that the Nasdaq
Composite has been trading inside a rising channel with the lower bound of the
channel being a strong support zone
given that we had also the confluence with the
swing low and the 38.2% Fibonacci retracement level.
This support zone got breached with more bearish bets piling in to target the
14050 level.
Nasdaq Composite Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, we can see more
closely the current price action and the support zone around the 14770 level. From
a risk management perspective, a pullback into the support now turned
resistance will offer a better risk to reward setup
with the sellers finding also the red 21 moving average for confluence.
Upcoming
Events
Today we will have another slate of US labour market
data with the release of the US ADP and Jobless Claims figures. Tomorrow, we
conclude the week with the NFP report and the ISM Services PMI.
This article was written by FL Contributors at www.forexlive.com.
